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Biotech / Medical : Biogen -- Ignore unavailable to you. Want to Upgrade?

To: Harold Engstrom who wrote (682)	6/25/1998 6:47:00 PM
From: Hong-Lee Yu	Read Replies (1) \| Respond to of 1686

Harold, Lehman analysts may increase the target price once Biogen beats the estimate, which I think they will in Q2. The report was completed before the annual meeting. So they probably have not taken into consideration an increase of 7000 Avonex patients during Q2. Having strong and increasing royalty in addition to Avonex makes earning growth nicely even in 2000-2001 timeframe. I think that Biogen will start to enjoy the multiple expansion similar to emerging Phar. like Alza. Biogen could command premium 20% - 30% over its growth rate (25%). This implies the target price of 70 - 75 over next 12 months.